Chandigarh: The BJP government in Haryana on Tuesday decided to lower the retirement age of state government employees from 60 to 58 years and hike VAT on diesel from the present 9.24 percent to 12.07 percent.

The decision to lower the retirement age will be implemented immediately, Chief Minister Manohar Lal Khattar told reporters after a Cabinet meeting here this evening. All employees who attain the age of 58 on November 30, 2014 will retire from service.

The Congress government led by Bhupinder Singh Hooda had increased the retirement age of the employees by two years to 60, shortly before the October 15 Assembly polls.

Khattar, however, said the retirement age of physically challenged, blind and Class IV employees will remain 60 years as decided by the previous government. The maximum age for entry into government jobs will also remain at 42, he added.

The Cabinet also decided to increase VAT on diesel from the present 9.24 per cent to 12.07 per cent, with the Chief Minister saying the exchequer would earn an additional Rs 750 crore annually following the move.

Among other decisions, the state Cabinet decided to scrap the Haryana Staff Selection Commission and the State Teachers' Selection Board. Khattar said the Haryana Staff Selection Commission would be scrapped resulting in removal of its Chairman and members.